UPDATE: MPS gives transportation company new multimillion-dollar contract despite major discrepancies
Vehicles in the parking lot of Frontier Transportation Services (Alpha News)
Serious financial management questions continue to swirl as Minneapolis Public Schools (MPS) refuses to discuss its contracts with Frontier Transportation Services.
Earlier this year, Alpha News reported on the school district’s contract with Frontier Transportation Services, a passenger-van company operated by Falmata Bedasso and Abdurahman Kadir.
Reporters also visited Frontier’s listed office building in Roseville, where the office appeared mostly vacant. An individual at the location said Bedasso was not there.
The district’s contract authorized Frontier to receive up to $3.6 million through 2027 — a cumulative cap. Yet by early 2025, invoices show MPS had already paid more than $7 million to the company.
Most of Frontier’s billing appeared to be tied to transporting Homeless and Highly Mobile (HHM) students in passenger vans. Under state law, Minnesota school districts are fully reimbursed by state government for transportation services that assist HHM students.
As such, MPS is paying Frontier with state taxpayer dollars rather than its own funds.
Following Alpha News’ reporting, the school district issued a statement claiming the contract with Frontier is valued at $3.6 million “each year through June 30, 2027” — describing the figure as an annual amount rather than a cumulative total.
MPS also said Frontier “has not invoiced above the agreed upon and authorized amount.” MPS published the statement on its website but never sent it to Alpha News.
However, Alpha News was unable to find language in the contracts indicating the $3.6 million figure was annual.
Alpha News asks for proof of MPS’ claim
MPS’ statement prompted Alpha News to ask the district a follow-up question: Can you show where in the contract or amendments it states $3.6 million is an annual limit?
Instead of providing the answer, the district replied with a question of its own:
“If that information is provided to Alpha News, will you issue a correction to or redaction of the published article?” — a surprising response for a taxpayer-funded institution whose transparency should not hinge on changes to media coverage.
To date, neither MPS senior financial officer Ibrahima Diop nor the district has provided documentation or explanation as to where in the contracts it states that the $3.6 million was meant to be an annual amount.
Examination of MPS contracts only raises more questions
The first contract between MPS and Frontier was approved in June of 2022 and ran for the duration of the 2022-23 school year. That contract was not to exceed $1.5 million in total compensation to Frontier.
An addendum to the contract was approved in July of 2022 which extended the contract term through June of 2024 and allowed MPS to extend the contract through June of 2027 at the school district’s discretion.
In April of 2023, the contract was amended to add $500,000 to Frontier’s compensation. This amendment was titled “First Amendment” to the original contract.
Another amendment was approved just a few months later. This amendment was also titled “First Amendment” to the original contract. This amendment added $1.5 million to the total compensation that Frontier could receive.
Finally, a third amendment was approved in May of 2024. This amendment, simply dubbed “Amendment,” says the contract runs from July of 2022 through June of 2027; it also notes that Frontier’s accumulative compensation for the contract is capped at $3.6 million.
Screenshot of May 2024 amendment/Minneapolis Public Schools
In June of this year, MPS approved a new contract with Frontier. This new contract, which runs through the 2025–26 school year, requires Frontier to provide transportation services for “General Education, Special Education, and Homeless and Highly Mobile” students.
Under the terms of this contract, Frontier’s total compensation is capped at $2.7 million.
The contracts and amendments only raise more questions: Does MPS have an explanation for the $7 million in payments? Why did MPS agree to another contract with Frontier? Are both contracts currently active? Why does MPS’ bookkeeping appear to be so mismanaged?
Alpha News reached out to MPS seeking answers but did not receive any response.
Owner of Frontier Transportation lobbies lawmakers
Alpha News has also learned that Frontier’s owner and operator, Falmata Bedasso, received a total of $325,000 from African Economic Development Solutions (AEDS), a nonprofit that distributes small business aid and has has received millions in taxpayer dollars.
During the 2025 legislation session, Bedasso was at the State Capitol to support a bill that would give more state funding to AEDS.
Bedasso, billed as an East African “success story,” testified before the Minnesota Senate’s Jobs and Economic Development Committee in March. He spoke in favor of a bill introduced by DFL Sen. Bobby Joe Champion that would send another $2 million to AEDS.
“Without AEDS I won’t be able to employ 110 individuals and also provide transportation for these needy school districts,” Bedasso told lawmakers.
He described how he scaled his company from six vans to more than 140 vehicles, thanks in part to multiple rounds of grants from AEDS.
“Quite a story,” one senator remarked after Bedasso’s testimony.
According to Bedasso’s own testimony, he was awarded $25,000, then $100,000, then another $200,000 to expand his transportation business.
During the 2025 special session of the Minnesota Legislature, a provision awarding AEDS $2 million was rolled into an omnibus bill and passed into law.
Luke Sprinkel contributed to this report.
Jenna Gloeb
Jenna Gloeb is an Edward R. Murrow Award-winning journalist, media producer, public speaker, and screenwriter. Most recently, she worked as a reporter and on-air host for CCX Media. Jenna is a Minnesota native and resides in the Twin Cities with her husband, son, daughter, and two dogs.
